BILL NUMBER: AB 577 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 5, 2015
AMENDED IN ASSEMBLY APRIL 6, 2015
INTRODUCED BY Assembly Member Bonilla
FEBRUARY 24, 2015
An act to add Section 39718.5 to the Health and Safety Code, and
to add Chapter 7.8 (commencing with Section 25680) to Division 15 of
the Public Resources Code, relating to biomethane.
LEGISLATIVE COUNSEL'S DIGEST
AB 577, as amended, Bonilla. Biomethane: grant program.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020. The act authorizes the state
board to include the use of market-based compliance mechanisms.
Existing law requires all moneys, except for fines and penalties,
collected by the state board from the auction or sale of allowances
as part of a market-based compliance mechanism to be deposited in the
Greenhouse Gas Reduction Fund and to be available upon
appropriation.
This bill would, upon appropriation, require the State
Air Resources Board to allocate an unspecified
percentage of the moneys in $13,000,000 from the
fund to the State Energy Resources Conservation and Development
Commission for the implementation of a biomethane collection and
purification grant program. The bill would require the commission to
develop and implement the grant program to award moneys for projects
that build or develop collection and purification technology,
infrastructure, and projects that upgrade existing biomethane
facilities to meet certain requirements.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) California imports 91 percent of its natural gas, which is
responsible for 25 percent of all greenhouse gas (GHG) emissions.
This costs California billions of dollars in lost revenues and jobs.
(b) California made a commitment to address climate change with
the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code). For
California to meet its GHG reductions goals, the GHG emissions from
the natural gas sector must be reduced.
(c) Biomethane is gas generated from organic waste through
anaerobic digestion, gasification, pyrolysis, or other conversion
technology that converts organic matter to gas. Biomethane may be
produced from sources such as agricultural waste, forest waste,
landfill gas, wastewater treatment byproducts, and diverted organic
waste.
(d) Biomethane provides a more sustainable and cleaner alternative
to natural gas. If 10 percent of California's natural gas use were
to be replaced with biomethane, GHG emissions would be reduced by
tens of millions of metric tons of carbon dioxide equivalent every
year.
(e) Almost 300 billion cubic feet of biomethane could be produced
in California each year. This biomethane could power 2 to 3 million
homes or generate 2.4 billion gallons of clean, ultralow carbon
transportation fuels.
(f) Investing in biomethane would create cobenefits, such as
renewable power available 24 hours a day, seven days a week,
reduction of fossil fuel use, reduction of air and water pollution,
and new jobs.
(g) Biomethane could be used for things such as transportation
fuel or injected into the natural gas pipeline for other uses. The
most appropriate use of biomethane varies depending on the source,
proximity to existing natural gas pipeline injection points or large
vehicle fleets, and the circumstances of existing facilities.
(h) The biomethane market has been slow to develop in California
because the collection and purification of biomethane can be costly.
Investing in biomethane purification equipment and infrastructure is
necessary for companies to meet existing biomethane safety and purity
standards. Alternative funding for compliance with standards
established pursuant to Section 25421 of the Health and Safety Code
must be found so that biomethane can be transmitted via California's
vast natural gas pipeline infrastructure.
(i) Biomethane is poised to play a key role in future natural gas
and hydrogen fuel markets as a blendstock that can significantly
reduce the carbon footprint of these two fossil-based alternative
fuels.
SEC. 2. Section 39718.5 is added to the Health and Safety Code, to
read:
39718.5. Upon appropriation by the Legislature, the
state board shall allocate ____ percent of the moneys
thirteen million dollars ($13,000,000) from the fund shall
be allocated to the State Energy Resources Conservation and
Development Commission for the purposes of Chapter 7.8 (commencing
with Section 25680) of Division 15 of the Public Resources Code.
SEC. 3. Chapter 7.8 (commencing with Section 25680) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 7.8. BIOMETHANE COLLECTION AND PURIFICATION GRANT
PROGRAM
25680. (a) The commission shall develop and implement a grant
program to award moneys appropriated pursuant to Section 39718.5 of
the Health and Safety Code for projects that build or develop
collection and purification technology, infrastructure, and projects
that upgrade existing biomethane facilities to meet the requirements
established pursuant to Section 25421 of the Health and Safety Code.
(b) In granting an award, the commission shall consider both of
the following:
(1) Opportunities to colocate biomethane producers with vehicle
fleets to generate biomethane and convert it to transportation fuel
in the same location.
(2) Location of biomethane sources and their proximity to natural
gas pipeline injection sites.
(c) In prioritizing projects eligible for grants pursuant to this
section, the commission shall maximize the reduction of greenhouse
gas emissions achieved by a project for each dollar awarded.